The slogan “location, location, location!” is no longer the most important factor for real estate investment, at least not all the time. Many great locations have become hot, too pricey and unworthy for investors to pursue especially when economy is going down, just not wise! Not everyone affords to buy properties at the city centre. For an investor without a super deep-pocket, we should not risk our money and limited loan opportunity for solely location especially a mature location. Yes, you might still make a profit having higher chance to make a mistake at the same time.
During tough period, I prefer property with higher rental return. If I had to take a larger loan for property at a hot location but getting the same/similar rental yield as another property at outskirt with much more smaller loan, I will go for the later for sure even if it is a RM 100,000 property. There are certainly opportunities out there during this challenging time. Just like stock market, there are winners and losers during bull market and bear market. Places in city centre would become saturated and home buyers are now considering places further away from the city. Very simple, tighter bank loan, rocketed property price in the city and better quality of life (with the improving infrastructure) are among the reasonable factors.
Rawang (north), Port Klang (west) and Seremban (south) in Malaysia have tremendous development recently. Good take-up rate has shown in Semenyih and Seremban lately, time has CHANGED! A more suitable mantra now should be “AFFORDABLE, AFFORDABLE and AFFORDABLE!” There are about 100,000 people commuting back and forth between outskirt cities and city centre everyday. They are adapting the travelling distance and this shows a new trend during challenging time. This can become better with more and more train stations being built to connect to areas like Kajang, Cheras, Sg. Buloh and etc. We can sometimes look into some LOW/MEDIUM cost landed properties in mature area at the outskirt especially if the rental yield is more than 5%. For beginner, this costs you lesser down payment, smaller loan and better liquidity when you want to sell it. Here are some factors that you need to consider when buying a property in 2017:
1) Affordable price
3) Good rental yield
5) Lower price (smaller loan)
6) Good liquidity (in demand, easy to dispose especially price is affordable)
7) Foresee better infrastructure in future (optional)
I strongly believe that the trend now is to move outskirt for cheap, affordable and potential properties especially during challenging period. Well, this is solely my personal view and strategy to invest during bad time. We adjust our strategies from time to time. For now, AFFORDABLE and LIQUIDITY will allow you to save and wait for the best deal to come, who knows what will happen tomorrow. If you require an independent party (not representing real estate agency) to search/accompany/advice you in real estate investment, feel free to reach me here. Let’s make little impact today and in future by investing together! Happy hunting and investing!
Everyone is talking about property bubble. When it will come? You can refer to the post here.